NAIMMCQ Economics Current the risk-free rate is 3.5% and the expected return of the S&P 500 is 11%. For a company whose stock has a beta of 1.7 what would be its cost of equity capital, calculated in accordance with CAPM?

Current the risk-free rate is 3.5% and the expected return of the S&P 500 is 11%. For a company whose stock has a beta of 1.7 what would be its cost of equity capital, calculated in accordance with CAPM?

Economics

Current the risk-free rate is 3.5% and the expected return of the S&P 500 is 11%. For a company whose stock has a beta of 1.7 what would be its cost of equity capital, calculated in accordance with CAPM?

A) 12.75%
B) 16.25%
C) 22.20%
D) 39.00%

Answer: B

NAIMMCQ

Current the risk-free rate is 3.5% and the expected return of the S&P 500 is 11%. For a company whose stock has a beta of 1.7 what would be its cost of equity capital, calculated in accordance with CAPM?

Current the risk-free rate is 3.5% and the expected return of the S&P 500 is 11%. For a company whose stock has a beta of 1.7 what would be its cost of equity capital, calculated in accordance with CAPM?

Share this